RNWK--What's up with online privacy?
September 12, 2000
by Eric J. Sinrod
People remain very concerned about maintaining their privacy on the Internet, but so far, workable solutions have not been found.
A couple of months ago, the Pew Internet & American Life Project conducted a survey about trust and privacy online. The results of the survey are illuminating.
The statistics
The vast majority of American Internet users want the privacy balance to be tilted in their favor and away from online companies. They believe that it is an invasion of privacy for businesses to monitor users' Web browsing, and by a 2-to-1 margin they reject the notion that Web tracking can be helpful.
Of the surveyed Internet users, 86 percent favor "opt-in" privacy policies that would require companies to seek permission to use personal information. This cuts against "opt-out" policies generally favored by industry that put the onus on Internet users to request that their personal information not be utilized.
Of great interest, 94 percent of surveyed Internet users believe that privacy violators should be disciplined. The nature of the discipline could range from prison terms, to fines, to the shutting down of websites and to placing violators on a list of "fraudulent" websites.
In addition to the worries expressed by those surveyed by Pew, data recently released by the Federal Trade Commission shows a growing problem of identity theft. The FTC just reported that it receives 1,000 calls a week to its Identity Theft hotline, as compared to 400 calls per week less than half a year ago.
The FTC pointed out that the Internet serves as a conduit for the distribution of all sorts of personal data, including credit card numbers, names, addresses and the like. The most common complaint reported to the FTC (about 50 percent of callers) has been credit card fraud.
So what has been done about privacy concerns?
Self-regulation
The Clinton administration and industry to date generally have taken a "self-regulation" approach when it comes to online privacy. But many people have grown tired of this approach and feel that the industry on its own is not taking the type of privacy medicine that is necessary. Indeed, the FTC recently signaled that legislation, as opposed to self-regulation, may be required.
As part of self-regulation, certain "seal" programs have developed. If a company states that it complies with certain principles as part of its privacy policy, it can obtain a third-party privacy seal of approval.
Truste is one organization that offers a privacy seal program. But even with respect to Truste, privacy concerns have emerged.
For example, it was just reported that Truste's website used "cookies," small text files used for online tracking. Truste apparently ceased this practice as soon as this was reported. Truste explained that this all came about because it had entered into an agreement with another company to monitor traffic on its website, and that company implemented means to track website users.
Truste also was the recipient of bad news last year when it was reported that Microsoft (MSFT) and RealNetworks (RNWK), members of its seal program, apparently were assembling personal data from people who were downloading their software. Truste reportedly then revised its privacy agreement so that it would have the ability to deal with members who violate the Truste privacy principles. |
